SBA financing now available for energy efficiency
A new public policy goal of the U.S. Small Business Administration to encourage energy efficiency means another potential source of financial support is now available for small businesses.
Up to $4 million in financing under the SBA’s 504 loan program can now be made available for projects that can be shown to save energy. As part of the Energy Independence and Security Act of 2007, the goal of encouraging energy efficiency is now part of the SBA’s mission, meaning projects that reduce energy use, follow principles of sustainable design or contribute to the production of renewable energy can qualify for affordable, fixed-interest, long-term loans under the 504 program.
These energy efficiency projects are not required to show that jobs will be created, a change from traditional requirements of the 504 loan program. Applicants must demonstrate that the projects will cut energy use by at least 10 percent, or that they increase the use of renewable energy. Projects such as improving heating and air conditioning, adding solar panels, or improving insulation and lighting could all qualify for up to $4 million in loans if a 10 percent energy savings can be documented.
New construction or renovations can qualify for up to $2 million in financing if they meet sustainable design or “green building” principles. Many of these guidelines are outlined by the Leadership in Energy and Environmental Design (LEED) program of the U.S. Green Building Council at www.usgbc.org.
This new policy focus of the SBA adds another source of financing for small businesses that are expanding, renovating or even consolidating. We at Horizon Certified Development Co. have approved and administered more than 1,000 loans to small businesses since 1983, investing more than $500 million in projects, and can help determine whether a project will qualify under the new program.
For more information about the new SBA program or other financial assistance available to small businesses, please contact Andrew Young at 513-631-8292 or by e-mail at andrew@hcdc.com.
